Losses at SIA Cargo, however, deepened to S$34 million from a loss of S$9 million a year before.

Group revenues fell 2.1 per cent to S$3.65 billion, largely due to a 11.6 per cent drop in cargo revenues as yields continued to be under pressure in the global air freight market.

Expenditure fell by 4.4 per cent to S$3.46 billion, large due to a S$357 million drop in fuel costs amid falling oil prices and lower hedging losses.

The company's net profit was up 182.4 per cent at S$257 million, with one-off gains from a divestment of the company's stake in a Hong Kong-based maintenance firm helping bolster the company's bottom line.

SIA warned that the outlook remains "challenging" amid economic weakness and geopolitical concerns. "Competition remains intense with aggressive capacity injection, and yields will continue to remain under pressure. Yields will be further diluted if key revenue-generating currencies depreciate against the Singapore dollar," said SIA.

"The cargo market remains soft, with economic uncertainty in Europe and China. Cargo yields are expected to remain under pressure as overcapacity persists in the industry."